Restaurant Insurance

Running a restaurant can be fulfilling but it also takes a lot of hard work! There may also be unexpected risks along the way, such as equipment breakdowns, fire damage, food spoilage, and liquor liability. One way to have peace of mind and mitigate potential risks is by getting restaurant insurance. Keep reading to learn more.


What is restaurant insurance?

Restaurant insurance is customized coverage for the specific risks that restaurant owners face. Every restaurant is unique, so your coverage should be too. Even by taking precautions, unforeseen accidents can happen that are out of your control. For example, you may be subject to employee dishonesty, equipment breakdown, lost profits, and business interruption expenses following a claim.

That’s why the right coverage is so important. You can tailor your insurance to cover everything from wine collections and state of the art equipment to business records and more.

What restaurant types are eligible for insurance?

  • Bakeries
  • Bars and pubs
  • Cafes
  • Cafeterias
  • Catering services
  • Coffee shops
  • Delis
  • Diners
  • Fast-food restaurants
  • Fine-dining restaurants
  • Food trucks
  • Take-out or delivery only establishments
  • And more!

Contact a broker from BrokerLink to learn more about which restaurant types are covered.

What does restaurant insurance cover?

Commercial general liability insurance

Food poisoning, slip and falls, and bodily injuries at your business are just a few of the many potential liabilities you face. Commercial general liability insurance can help protect your restaurant against the day-to-day hazards that lead to expensive claims or lawsuits.

Host liquor liability

If your restaurant serves alcohol, then host liquor liability insurance is a must. Generally, host liquor liability will cover you in the event of a claim for personal injury or property damage, in which the consumption of alcohol plays a major role. Depending on your specific policy, the following may be covered:

  • Legal expenses, including attorney fees due to a lawsuit.
  • The cost of damages if the court happens to find you to be the liable party.
  • Settlements, if you and/or the other party has decided to settle outside of court.

Commercial property insurance

A kitchen fire, water damage or a natural disaster could devastate your business. Commercial property insurance covers your restaurant and its contents from insured perils from equipment and fixtures to furniture and building peripherals. In addition, it helps cover the replacement or repair cost on equipment that has broken down from external sources.

Equipment breakdown insurance

Depending on the size of your business, you may want to consider an equipment breakdown add-on to your policy. Although property insurance covers your building and the contents inside such as equipment, it doesn’t cover equipment damage caused by internal factors. Internal sources of damage include mechanical, electrical, boilers, air conditioners and refrigeration systems, and computer breakdowns. For example, if your refrigerator breaks down, equipment breakdown insurance can help cover the cost to replace any spoiled food. For more information regarding whether equipment breakdown insurance is right for you, speak to a BrokerLink broker.

Cyber Insurance

As restaurant owners rely more on technology, your risk for data theft increases. It’s important to protect any sensitive information that belongs to a third party such as customer or employees from being compromised. Cyber insurance helps you to notify your customers and protect them from loss if hackers access their information.

Business Interruption insurance

The chance of experiencing an interruption to your business is real. Many business owners have experienced closures due to storms, power outages, fire or even theft. While property insurance can cover the cost of replacing your building, equipment, or materials, what is in place to maintain your business cash-flow in the meantime? Business interruption insurance helps you get your business up and running again, in the shortest time possible if you must close your restaurant for an extended period due to an insured property damage loss. Business interruption insurance can cover the costs of utilities and taxes, employee wages, lost business income, and rent payments.

Ready to get a restaurant insurance quote?

At BrokerLink, our insurance advisors help restaurant owners like you find the right insurance for their business and budget. We have the resources and expertise to answer your questions and take the time to understand your unique business needs. From there, we can help find a solution and explain the insurance options available to you. We want to make insurance easy so you can focus on serving up good times through exceptional food and beverages.

Find the right coverage for your restaurant business by getting a free and accurate quote. We can also be reached by phone, email, or in person at one of our many locations in Canada. Contact us today!


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